HALF-YEAR REPORT 2017 - Meyer Burger · 2 Half-Year Report 2017 ... Consolidated balance sheet ......

2017HALF-YEAR REPORT

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22 Half-Year Report 2017 | 4_Management Report 1st Half-Year 2017 | 8_Consolidated financial statements | 13_Condensed notes

to the consolidated financial statements | 19_Information for Investors and the Media

MEYER BURGER GROUPIN H1 2017

Meyer Burger’s systems and production equipment provide sustainable added value to our customers in the photovoltaic (solar), semiconductor and optoelectronic industries as well as other selected high-end markets based on semiconductor materials.

1 303Employees

308Incoming orders CHF 308.5 million

212Net sales CHF 212.3 million

43%Equity ratio 43.4%

7EBITDA CHF 6.9 million

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KEY FIGURES

Consolidated income statement

in TCHF 1.1.– 30.6.2017 1.1.– 30.6.2016

Net sales 212 294 217 759

Operating income after costs of products and services 98 239 107 226

in % of net sales 46.3 % 49.2 %

EBITDA 6 949 6 247

in % of net sales 3.3 % 2.9 %

EBIT – 8 801 – 20 802

in % of net sales – 4.1 % – 9.6 %

Net result – 16 962 – 25 559

Consolidated balance sheet

in TCHF 30.6.2017 31.12.2016

Total assets 493 910 629 889

Current assets 287 502 412 159

Non-current assets 206 409 217 729

Current liabilities 153 172 271 141

Non-current liabilities 126 298 124 323

Equity 214 440 234 424

Equity ratio 43.4 % 37.2 %

Net sales1st Half-Year in CHF million

Total balance sheetas of 31.12. resp. 30.6.2017 in CHF million

Equityas of 31.12. resp. 30.6.2017 in CHF million

EBITDA1st Half-Year in CHF million

2013

2014

2015

2016

2017

0 75 150

225

300

2013

2014

2015

2016

2017

–75

−37 0 37 75

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

0

200

400

600

800 0

125

250

375

500

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DEAR SHAREHOLDERS

The fundamental drivers of the PV industry continue to be positive and the latest forecasts re-garding end-installed PV capacities confirm the long-term upside potential. Several technology trends seen in the market, such as the shift from slurry-based to diamond wire based cutting, the move to upgrade cell production with PERC applications to enhance cell efficiency, cell and module bifaciality and further increases in solar module efficiency show that the PV industry is in a technology-buy-cycle which we believe will continue for the time being.

Meyer Burger achieved strong incoming orders of over CHF 308 million during the first half of 2017. This provides us with a substantial order backlog of CHF 339 million for the second half of the year and for 2018. Furthermore, the cost reduction initiatives of the structural programme were completed with the full effect of these cost savings becoming visible during the second half of 2017. The CHF 130 million 5% straight bond was repaid at the maturity date on 24 May 2017, which had a positive impact on the balance sheet structure and will reduce financing expenses going forward.

Meyer Burger is on track to achieve its earlier communicated targets of net sales at previous year’s level and a substantial improvement in its profitability.

Our results in detail Incoming orders, order backlogThe volume in new orders increased by 15% to CHF 308.5 million (H1 2016 CHF 267.8 million), reflecting by far the highest volume in any half-year period since 2011. This further confirms the

trend that wafer, cell and module manufacturers are making new investments to upgrade their existing technologies and to increase their production capacities which underscores Meyer Burger’s strong market and technology position in the PV in-dustry.

The order backlog amounted to CHF 339.1 million as at 30 June 2017 (31.12.2016 CHF 244.5 million) and provides a strong backlog for the second half of 2017 and into fiscal year 2018. The

book-to-bill ratio (incoming orders to net sales) stood at 1.45 for the first half of 2017 (H1 2016 ratio of 1.23).

Net salesAt CHF 212.3 million, net sales were 2.5% lower compared to the previous year period (H1 2016 CHF 217.8 million). Negative currency effects impacted net sales by about CHF 2.6 mil-lion or –1.2% in the first half of 2017. With the strong order backlog and substantial deliveries/customer acceptances scheduled by year-end 2017, the company expects a stronger second half year in net sales.

INCOMING ORDERS OF CHF 308.5 MILLION CONFIRM STRONG

POSITION IN THE PV INDUSTRY.

ORDER BACKLOG CHF 339.1 MILLION; BOOK-TO-BILL RATIO 1.45

MANAGEMENT REPORT1ST HALF-YEAR 2017

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The distribution of sales remained relatively constant compared to the previous year: Asia ac-counted for 73% (H1 2016 70%), Europe reflected 22% (H1 2016 23%) and Americas was 5% (H1 2016 7%) of net sales in the first half of 2017.

Operating income after costs of products and servicesOperating income after costs of products and services amounted to CHF 98.2 million (H1 2016 CHF 107.2 million), with a margin of 46.3% for the first half of 2017 (H1 2016 49.2%). The op-erating income was burdened by several items, such as exceptional warranty provisions for an update/exchange of solar modules produced in the years 2008–2009, value adjustments on inventory in connection with streamlining the product portfolio, and negative currency effects on trade receivables and customer prepayments, for a total amount of CHF –11.4 million. Without these adverse effects, the margin would have been 51.2%, whereas for the first half of 2016 the normalized margin was at 48.3 %.

Operating expensesMeyer Burger completed its cost reduction initiatives in conjunction with its structural programme by the end of June 2017. However, the company continues to optimise its cost structures through various ongoing measures. In total over 260 employment contracts were terminated within the scope of the structural programme and further measures taken in the first half of 2017 (such as discontinuation of wire production at DMT, closure of the Minhang manufacturing site), resulting in a reduction of 243 FTEs as of 30 June 2017 and 261 FTEs in total as per 30 September 2017.

Due to the strong order intake and the high order backlog, the number of temporary employees was increased during the first half of 2017 from 80 as of year-end 2016 to 213 as of the end of June 2017, in order to handle the higher production volumes. As of 30 June 2017, Meyer Burger employed 1,303 FTE and 213 temporary staff compared to 1,547 FTE and 189 temporary em-ployees as of 30 June 2016.

Personnel expenses declined by CHF 5.5 million or 7% compared to the previous year and amounted to CHF 69.4 million (H1 2016 CHF 74.9 million), proving that Meyer Burger suc-ceeded in flexibilising its organisation and significantly reducing its fixed cost base. The financial effects of all the cost measures initiated and executed so far will also positively impact the sec-ond half of 2017. Other operating expenses were CHF 21.9 million (H1 2016 CHF 26.1 million), representing a decline of 16% compared to the previous year period.

EBITDA and EBITEBITDA increased to CHF 6.9 million in the first half of 2017 (H1 2016 CHF 6.2 million). Without the adverse effects mentioned above, EBITDA on an adjusted basis amounts to CHF 18.4 million (EBITDA margin 8.6%). With higher net sales and a number of cost reduction measures becom-ing fully effective in the second part of the year, Meyer Burger expects a substantially higher EBITDA contribution with an estimated EBITDA margin of >11% for the second half of 2017.

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Depreciation and amortisation came to a total of CHF 15.8 million (H1 2016 CHF 27.0 million) and declined in line with expectations. The division is as follows: CHF 6.1 million for scheduled depreciation of property, plant and equipment and CHF 9.7 million for scheduled amortisation of intangible assets, which resulted mainly from the M&A activities in 2011 and previous years. The result at EBIT level amounted to CHF – 8.8 million (H1 2016 CHF – 20.8 million).

Financial resultThe financial result, net, amounted to CHF –7.4 million for the first half of 2017 (H1 2016 CHF –7.9 million). Financial expenses in 2017 include interest expenses of CHF 2.3 million for the 5% straight bond (repaid in May 2017) and of CHF 3.8 million for the 5.5% convertible bond, other interest expenses of CHF 0.9 million as well as other financial expenses of CHF 1.6 million. Financial income for the first half of 2017 included interest income of CHF 0.2 million and unre-alised positive foreign currency translation effects of CHF 0.9 million.

Extraordinary resultThe extraordinary result amounted to CHF –0.6 million and reflects costs in conjunction with the discontinuation of the diamond wire production at Diamond Materials Tech (DMT). TaxesTaxes for the first half of 2017 amounted to a tax expense of CHF 0.2 million (H1 2016 tax in-come of CHF 3.2 million). The tax expense in the first half of 2017 results from current income taxes and changes in deferred tax assets and liabilities.

Net resultNet result came to CHF –17.0 million (H1 2016 CHF – 25.6 million). Net result per share amounted to CHF – 0.03 for the first half year period (H1 2016 CHF – 0.08). On an adjusted basis without the adverse effects mentioned, net result would have amounted to CHF – 5.6 million in the first half of 2017.

CHF 130 million 5 % straight bond redeemedOn the maturity date of 24 May 2017, Meyer Burger redeemed the CHF 130 million 5 % straight bond at nominal value. Going forward, the repayment will reduce interest expenses on an annualized basis by CHF 6.5 million.

Balance sheetThe redemption of the straight bond also led to a contraction of the balance sheet total, thereby positively impacting the equity ratio. The balance sheet total was CHF 493.9 million as at 30 June 2017 (31.12.2016 CHF 629.9 million). Cash and cash equivalents declined with the repayment of the bond and stood at CHF 117.2 million. Inventories were CHF 103.4 million, property, plant and equipment CHF 97.4 million, intangible assets CHF 34.5 million and deferred tax assets CHF 73.0 million.

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Total liabilities amounted to CHF 279.5 million, of which trade payables were CHF 32.0 million, customer prepayments CHF 70.4 million, provisions CHF 13.4 million and financial liabilities CHF

121.8 million. Equity amounted to CHF 214.4 million (31.12.2016 CHF 234.4 million). The equity ratio as of 30 June 2017 was 43.4% (31.12.2016 37.2%).

Cash flowCash flow from operating activities was again positive with CHF +3.5 million (H1 2016 CHF +15.4 million). The difference in the operating cash flow compared to the previous year period is mainly due to changes in net working capital.

Cash flow from investing activities was CHF +1.4 million (H1 2016 CHF –2.9 million) and in-cluded the sale of securities (CHF 3 million of straight bonds held at year-end 2016) and normal conservative investments in non-current assets.

Cash flow from financing activities amounted to CHF –134.2 million (H1 2016 CHF –0.5 million) mainly due to the repayment of the 5% straight bond in May 2017.

Organisational alignments within the Executive BoardDr Gunter Erfurt, Chief Operating Officer (COO), has been appointed new Chief Technology Officer (CTO). Dr Dirk Habermann, Chief Innovation Officer, will step down from the Executive Board and will become General Manager of the Dutch entity for Specialised Technologies, and head special projects regarding new technologies within the Group. Daniel Lippuner (48), a Swiss citizen and former Group Chief Executive Officer at Saurer Group in Shanghai, China, and Wattwil, Switzer-land, will take over the role as Chief Operating Officer. The changes will be effective as of 1 Sep-tember 2017. As of that date, the Executive Board consists of Dr Hans Brändle (CEO), Michel Hirschi (CFO), Michael Escher (CCO), Dr Gunter Erfurt (CTO) and Daniel Lippuner (COO).

2017 Outlook Based on the strong incoming orders, high order backlog and with substantial deliveries/cus-tomer acceptances scheduled for November and December 2017, Meyer Burger confirms its previous outlook for 2017 of a similar sales level compared to the previous year. Based on the planned customer acceptances, Meyer Burger expects net sales of about CHF 440–460 million and EBITDA of about CHF 30–45 million for fiscal year 2017.

Dr. Alexander Vogel Dr. Hans BrändleChairman Chief Executive Officer

EQUITY RATIO OF 43.4% FOLLOWING REPAYMENT OF THE STRAIGHT BOND.

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Half-Year Report 2017 | 4_Management Report 1st Half-Year 2017 | 8_Consolidated financial statements | 13_Condensed notes

to the consolidated financial statements | 19_Information for Investors and the Media88

in TCHF 30.6.2017 31.12.2016

Assets

Current assets

Cash and cash equivalents 117 205 246 427

Securities – 3 060

Trade receivables 34 833 37 674

Other receivables 20 716 22 681

Net receivables from construction contracts 3 189 679

Inventories 103 431 95 240

Prepaid expenses and accrued income 8 128 6 399

Total current assets 287 502 58.2% 412 159 65.4%

Non-current assets

Other long-term receivables 1 493 1 727

Property, plant and equipment 97 416 100 458

Intangible assets 34 478 43 806

Deferred tax assets 73 021 71 739

Total non-current assets 206 409 41.8% 217 729 34.6%

Total assets 493 910 100.0% 629 889 100.0%

Liabilities and equity

Liabilities

Current liabilities

Financial liabilities 1 433 131 484

Trade payables 31 993 28 010

Net liabilities from construction contracts 712 699

Customer prepayments 70 352 58 270

Other liabilities 3 910 6 281

Provisions 11 734 9 614

Accrued expenses and prepaid income 33 038 36 783

Total current liabilities 153 172 31.0% 271 141 43.0%

Non-current liabilities

Financial liabilities 120 323 118 695

Other liabilities 2 538 2 129

Provisions 1 683 1 752

Deferred tax liabilities 1 754 1 747

Total non-current liabilities 126 298 25.6% 124 323 19.7%

Total liabilities 279 471 56.6% 395 464 62.8%

Equity

Share capital 27 411 27 411

Capital reserves 904 963 904 194

Treasury shares – 5 191 – 2 947

Reserve for share-based payments 1 383 2 651

Accumulated losses – 714 328 – 697 256

Total equity excl. minority interests 214 238 43.4% 234 053 37.2%

Minority interests 202 372

Total equity incl. minority interests 214 440 43.4% 234 424 37.2%

Total liabilities and equity 493 910 100.0% 629 889 100.0%

The Notes starting on page 13 are an integral part of the consolidated financial statements.

CONSOLIDATED BALANCE SHEET

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CONSOLIDATED INCOME STATEMENT

in TCHF 1.1.– 30.6.2017 1.1.– 30.6.2016

Net sales 212 294 100.0% 217 759 100.0%

Other income – 1 542 2 955

Income 210 752 220 714

Changes in inventories of finished products and work in process 5 925 20 439

Costs of products and services – 119 768 – 136 594

Capitalised services 1 330 2 667

Operating income after costs of products and services 98 239 46.3% 107 226 49.2%

Personnel expenses – 69 393 – 74 862

Operating expenses – 21 897 – 26 117

Earnings before interests, taxes, depreciation and amortisation (EBITDA) 6 949 3.3% 6 247 2.9%

Depreciation and impairment property, plant, equipment – 6 095 – 9 010

Amortisation and impairment intangible assets – 9 655 – 18 039

Earnings before interests and taxes (EBIT) – 8 801 – 4.1% – 20 802 – 9.6%

Financial result – 7 413 – 7 915

Operating result – 16 214 – 7.6% – 28 717 – 13.2%

Extraordinary result – 590 –

Earnings before taxes – 16 804 – 7.9% – 28 717 – 13.2%

Income taxes – 158 3 158

Result – 16 962 – 8.0% – 25 559 – 11.7%

Attributable to

Shareholders of Meyer Burger Technology Ltd – 16 816 – 25 371

Minority interests – 146 – 188

Earnings per share in CHF

Basic earnings per share – 0.03 – 0.08

Diluted earnings per share – 0.03 – 0.08


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in TCHF Attributable to shareholders of Meyer Burger Technology Ltd

Share capital Capital reserves

Equity as at 1.1.2016 4 526 768 533

Result – –

Currency translation differences recognised in reporting period – –

Capital increases 43 1 628

Purchase Meyer Burger (Germany) AG shares – 683

Sale/use of treasury shares – –

Share-based payments – –

Issuance of shares for employees – –

Transfer of shares for employees to the plan participants after vesting period – –

Reclassification – 1 483

Equity as at 30. 6. 2016 4 569 772 327

Equity as at 1.1.2017 27 411 904 194

Result – –

Currency translation differences recognised in reporting period – –

Capital increases (follow-up costs capital increase December 2016) – – 199

Purchase Meyer Burger (Germany) AG shares – 207

Purchase of treasury shares – –

Sale/use of treasury shares – – 73

Share-based payments – –

Issuance of shares for employees – –

Transfer of shares for employees to the plan participants after vesting period – –

Reclassification – 833

Equity as at 30.6.2017 27 411 904 962


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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Attributable to shareholders of Meyer Burger Technology Ltd Attributable to shareholders of Meyer Burger Technology Ltd

Treasury shares

Reserve for share-based

payments

Currency translation differences Offset goodwill

Other retained earnings

Accumulated losses

Total equity excl. minority

interestsMinority interests

Total equity incl. minority

interests

– 4 494 3 664 – 27 606 – 237 677 – 332 761 – 598 045 174 185 819 175 003

– – – – – 25 371 – 25 371 – 25 371 – 188 – 25 559

– – – 63 – – – 63 – 63 5 – 58

– – – – – – 1 671 – 1 671

– – – – – 1 058 – 1 058 – 375 – 111 – 486

87 – – – – – 87 – 87

– 1 193 – – – – 1 193 – 1 193

– 1 753 – – – – – – 1 753 – – 1 753

1 462 – 1 462 – – – – – – –

– 9 – 1 474 – – – – – – –

– 4 705 1 919 – 27 669 – 237 677 – 359 190 – 624 535 149 575 525 150 100

– 2 947 2 651 – 28 911 – 237 677 – 430 668 – 697 256 234 053 372 234 424

– – – – – 16 816 – 16 816 – 16 816 – 146 – 16 962

– – 28 – – 28 28 4 32

– – – – – – – 199 – – 199

– – – – – 285 – 285 – 77 – 27 – 105

– 3 822 – – – – – – 3 822 – – 3 822

130 – – – – – 57 – 57

– 1 014 – – – – 1 014 – 1 014

– – – – – – – – –

1 052 – 1 052 – – – – – – –

396 – 1 229 – – – – – – –

– 5 191 1 383 – 28 883 – 237 677 – 447 769 – 714 328 214 238 202 214 440

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in TCHF 1.1.– 30.6.2017 1.1.– 30.6.2016

Result – 16 962 – 25 559

Non-cash items 18 174 22 554

Decrease of net working capital 2 277 18 450

Cash flow from operating activities (operative cash flow) 3 489 15 445

Investments in securities – 15 065 –

Sale of securities 18 125 –

Investments in property, plant and equipment – 2 330 – 2 711

Sale of property, plant and equipment 451 283

Investments in intangible assets – 70 – 486

Sale of intangible assets 287 –

Cash flow from investing activities 1 398 – 2 914

Capital increase (follow-up costs capital increase December 2016) – 199 43

Purchase of shares of Meyer Burger (Germany) AG – 105 – 485

Purchase of treasury shares – 3 822 –

Repayment of (current) financial liabilities – 130 036 – 36

Cash flow from financing activities – 134 162 – 478

Change in cash and cash equivalents – 129 275 12 053

Cash and cash equivalents at beginning of period 246 427 101 457

Currency translation differences on cash and cash equivalents 53 4

Cash and cash equivalents at end of period 117 205 113 514


CONDENSED CONSOLIDATED CASH FLOW STATEMENT

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GENERAL INFORMATION

Meyer Burger Technology Ltd is a public limited company constituted in accordance with Swiss law. The address of the company’s registered office is: Schorenstrasse 39, 3645 Gwatt/Thun, Switzerland. Meyer Burger Technology Ltd registered shares (ticker: MBTN) are listed on the SIX Swiss Exchange in Zurich. The fiscal year of Meyer Burger Technology Ltd runs from 1 January to 31 December.

These consolidated half-year financial statements of Meyer Burger Group were approved for publication by the Board of Directors on 14 August 2017. The auditors have conducted a review of the statements (for a report on the review see page 18).

The Group currency (reporting currency) is the Swiss Franc (CHF). The consolidated statements are shown in thousands of Swiss Francs.

Meyer Burger is a leading global technology company specialising in innovative systems and processes based on semiconductor technologies. The company’s focus is on photovoltaics (solar industry) while its competencies and technologies also cover important areas of the semiconductor and the optoelectronic industries as well as other selected high-end markets based on semiconductor materials. Over the past ten years, Meyer Burger has risen to the forefront of the photovoltaic market and established itself as an international premium brand by of-fering superior precision products and innovative technologies. The company’s offering in systems, production equipment and services along the photovoltaic value chain includes the manufacturing processes for wafers, solar cells, solar modules and solar systems. Meyer Burger provides substantial added value to its customers and clearly differentiates itself from its competitors by focusing on core technologies of the value chain. The com-pany’s comprehensive product portfolio is complemented by a worldwide service network with spare parts, con-sumables, process know-how, customer support, after-sales services, training and other services. Meyer Burger is represented in Europe, Asia and North America in the respective key markets and has subsidiaries and own service centers in China, Germany, India, Japan, Korea, Malaysia, the Netherlands, Switzerland, Singapore, Tai-wan and the USA. The company is also working intensively to develop new PV markets such as South America, Africa and the Arab region.

SIGNIFICANT ACCOUNTING POLICIES

The significant accounting and valuation policies are described in detail in the Annual Report for the year ended 31 December 2016. The policies described have been applied consistently to the reporting periods presented.

1.1 Basis of accountingThe consolidated half-year financial statements have been prepared in accordance with the standards of Swiss GAAP FER 31 “Additional recommendations for listed companies”, which allows some simplification of the reporting and disclosures compared to the preparation of annual financial statements. These standards give a true and fair view of the net assets, financial position and results of operations.

The new rules on revenue recognition (amendments to the Swiss GAAP FER framework, FER 3 and FER 6), which are binding for financial statements after 1 January 2016, have been implemented by Meyer Burger as of 1 January 2016.

No further changes to the Swiss GAAP FER standards have been announced or released.

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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1.2 Changes in scope of consolidationThe scope of consolidation has changed as follows compared to the Annual Report as at 31 December 2016:

– The participation in Meyer Burger (Germany) AG has increased from 98.29 % to 98.42 %.

1.3 Foreign currency translationThe following translation rates into Swiss Francs were used:

Closing rate Average rate

Unit 30.6.2017 31.12.2016 30.6.2016 1st HY 2017 2016 1st HY 2016

European Euro (EUR) 1 1.0931 1.0739 1.0866 1.0765 1.0900 1.0959

US Dollar (USD) 1 0.9580 1.0191 0.9804 0.9950 0.9851 0.9822

Chinese Yuan Renminbi (CNY) 100 14.1232 14.6700 14.7560 14.4694 14.8325 15.0280

Japanese Yen (JPY) 100 0.8528 0.8730 0.9559 0.8851 0.9075 0.8795

Indian Rupee (INR) 100 1.4841 1.5020 1.4500 1.5140 1.4665 1.4620

Korean Won (KRW) 100 0.0839 0.0847 0.0846 0.0871 0.0850 0.0830

Malaysian Ringgit (MYR) 100 22.3181 22.7370 24.3330 22.6632 23.7915 23.9625

Singapore Dollar (SGD) 1 0.6940 0.7048 0.7263 0.7082 0.7134 0.7112

Taiwan Dollar (TWD) 100 3.1511 3.1540 3.0340 3.2431 3.0550 2.9620

Assets and liabilities in balance sheets of foreign Group companies are translated into Swiss Francs at the clos-ing rate, income statements at the average rate. Equity is translated at historical exchange rates. Any resulting foreign currency translation differences are offset against equity.

NOTES TO THE BALANCE SHEET

Total assets decreased by about 21.6% to CHF 493.9 million as at 30 June 2017 compared to CHF 629.9 mil-lion as at 31 December 2016. This reduction is the result of the repayment of the bond in the amount of CHF 130 million that matured on 24 May 2017.

NOTES TO THE INCOME STATEMENT

For details to the income statement please refer to the sections “Net sales”, “Operating income after costs of products and services”, “Operating expenses”, “Financial result”, “Extraordinary result” and “Taxes” in the management report on the first half-year 2017 on pages 4 to 6.

Earnings per share for half-year 2016 has been reduced from CHF – 0.28 to CHF – 0.08 compared to the disclosed half-year report 2016. This reduction is the result of the capital increase respectively the issued rights in December 2016. With this transaction the number of outstanding shares increased. The issued shares have been included retrospectively in the calculation of the average outstanding shares for half-year 2016.

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OTHER INFORMATION

1.4 Segment reportingThe activities of Meyer Burger Group are divided into the reportable business segments “Photovoltaics” and “Specialised Technologies”. While in previous years Alternative Materials was part of the business segment “Photovoltaics & Alternative Materials” it has been shifted to the segment “Specialised Technologies”. The busi-ness includes technologies to be used for slicing crystalline and other hard and brittle materials for applications outside the solar industry. This change in business segment was a consequence of the economic similarity and interrelationships between the entities as well as of the management structure. The comparison period has been restated according to the new structure.

Net sales by segments 1.1.– 30.6.2017

in TCHF Photovoltaics Specialised Technologies

Total Consolidation Total after consolidation

Net sales thirds 186 114 26 180 212 294 – 212 294

Net sales intercompany 449 10 321 10 771 – 10 771 –

Net sales 186 564 36 501 223 065 – 10 771 212 294

Net sales by segments 1.1.– 30.6.2016

in TCHF Photovoltaics Specialised Technologies

Total Consolidation Total after consolidation

Net sales thirds 193 517 24 243 217 759 – 217 759

Net sales intercompany 275 7 866 8 141 – 8 141 –

Net sales 193 792 32 108 225 900 – 8 141 217 759

Photovoltaics: The Photovoltaics segment largely comprises the core business of photovoltaics and covers the processes of wafering, solar cells, solar modules and solar systems with its portfolio of systems, produc-tion equipment and services.

Meyer Burger pursues the strategically long-term technology approach of considering core technologies of the photovoltaic value chain and optimally harmonising the technologies along the different processes (wafers, cells, modules, solar systems). Significant efficiency improvements in wafers, cells and modules can be achieved by using the latest technologies, which will continue to substantially reduce our customers’ production costs (Total Cost of Ownership).

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Specialised Technologies: With Specialised Technologies, Meyer Burger uses technologies that are success-fully deployed in photovoltaics, particularly in the field of applying or removing layers on different substrates and materials as well as for slicing crystalline and other hard and brittle materials, in a wide range of other high-tech markets. Muegge’s microwave and plasma technologies are used in biotech nology and environmental technol-ogy. PiXDRO inkjet print technology is used in the semiconductor industry as a pioneering technology. MicroSystems offers excellent solutions for surface treatment and sensor production with innovative plasma and ion-beam technologies. As a software development specialist, AIS manufactures control systems for factory automation, the automotive industry and other complex industrial processes. With this extensive port-folio, Meyer Burger is perfectly positioned and can efficiently take an active approach to new trends in other industries on the basis of its existing core technologies.

As outlined above, Meyer Burger currently manages its operations in different operating business units, which are grouped into the reporting business segments “Photovoltaics” and “Specialised Technologies”. Disclosure of the segment results would lead to much higher transparency in terms of our cost and margin structure than that of our relevant competitors, and we would be the only company to present detailed information on seg-ment profitability. Most of our relevant competitors are companies without publicly available financial informa-tion or are large companies with large reporting segments in which comparable information is diluted accord-ingly. The disclosure of segment results would therefore lead to a considerable competitive disadvantage for Meyer Burger compared to its competitors. In addition, such information may have negative impacts on the company’s negotiating position with customers and suppliers. For this reason Meyer Burger Group does not dis-close segment results.

1.5 Related party transactionsThe related parties consist primarily of shareholders, members of the Board of Directors and of the Executive Board, and non-consolidated subsidiaries.

The company procures consultancy services from Meyerlustenberger Lachenal Attorneys at Law. Dr Alexander Vogel, a member of the Board of Directors, is a partner in this law firm. The scope of the services procured amounted to TCHF 305 in the first half of 2017 and TCHF 143 in the first half of 2016.

Of the compensation to related parties as described above, TCHF 189 had not yet been paid as at 30 June 2017 (30 June 2016: TCHF 81) and was recognised as a liability in the balance sheet.

All business relations with related parties are conducted at arm’s length. No unusual transactions were effected with either the main shareholders or other related parties.

1.6 Contingent liabilitiesNo contingent liabilities existed as at 30 June 2017.

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1.7 Close-down Diamond Materials Tech, Inc.On 1 March 2017, Meyer Burger communicated the decision to discontinue the proprietary wire production for diamond wire at Diamond Materials Tech Inc. (DMT) in Colorado Springs, USA. In the meantime production for the PV (Photovoltaics) related business has been closed and a potential buyer for the non-PV related business of DMT has been sought. The incurred costs related to the gradual discontinuation of the production incurred so far as well as the expected costs related to the close-down of the company have been recognized in the extraordinary result. Income and costs incurred by running the ordinary business have been recognized in the ordinary result.

Considering the intention as well as the ongoing negotiations to sell DMT’s business, Meyer Burger continued to record assets and liabilities of DMT at realizable values. As per 30 June 2017, these realizable values have been revalued. The resulting adjustments have been recognized in the extraordinary result. The total amount of income and costs recognized in the extraordinary result is TCHF – 590.

In case of disposal of a company or of a part of the business, acquired goodwill which Meyer Burger offset with equity at the time of changing its financial reporting from IFRS to Swiss GAAP FER (in 2013) is to be considered to determine the profit or loss recognized in the income statement. For DMT, a goodwill of USD 22.5 million has been paid and offset with equity. The profit or loss from the disposal of DMT or part of the business would be recognized – analog to a close-down – in the extraordinary result. The effect of such a “goodwill recycling” on equity of the company will be neutral.

1.8 Events after the reporting dateNo events have occurred between 30 June and 14 August 2017 which would have a material effect on the recognized carrying amounts of assets and liabilities of the Meyer Burger Group or would have to be disclosed at this point.

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PricewaterhouseCoopers AG, Bahnhofplatz 10, Postfach, CH-3001 Bern, Switzerland Telefon: +41 58 792 75 00, Telefax: +41 58 792 75 10, www.pwc.ch

PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

Report on the Review of Interim consolidated financial statements to the Board of Di-rectors of Meyer Burger Technology AG

Thun

According to your request, we have reviewed the interim consolidated financial statements (balance sheet, income statement, cash flow statement, statement of changes in equity and notes / pages 8 to 17) of Meyer Burger Technology AG for the period from 1 January 2017 to 30 June 2017.

These interim consolidated financial statements are the responsibility of the Board of Directors. Our re-sponsibility is to issue a report on these interim consolidated financial statements based on our review.

Our review was conducted in accordance with the Swiss Auditing Standard 910, which require that a re-view be planned and performed to obtain limited assurance about whether the interim consolidated fi-nancial statements are free from material misstatement. A review is limited primarily to inquiries of com-pany personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements have not been prepared, in all material respects, in accordance with the requirements of Swiss GAAP FER 31 relating to interim reporting.

PricewaterhouseCoopers AG

Rolf Johner René Jenni

Bern, 14 August 2017

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INFORMATION FOR INVESTORS AND THE MEDIA

REGISTERED SHARES MEYER BURGER TECHNOLOGY LTD

Swiss valor number 10850379ISIN CH0108503795Listing SIX Swiss ExchangeTicker symbol MBTNReuters MBTN.SBloomberg MBTN SW Nominal value per registered share CHF 0.05Number of outstanding shares 548 222 160 as of 30 June 2017Share price high/low 1st Half-Year 2017 CHF 1.29/0.68Closing price as of 30 June 2017 CHF 1.20

CONVERTIBLE BOND 2014–2020

Swiss valor number 25344513ISIN CH0253445131Listing SIX Swiss ExchangeTicker symbol MBT14Reuters MBTN Bloomberg MBTN SW Coupon 5.50% per annum (retroactively as of 24.09.2016) Issued amount CHF 100 000 000Conversion price CHF 0.98Maturity 24 September 2020Bond price high/low 1st Half-Year 2017 136.25%/101.00%Closing price as of 30 June 2017 128.55%

OTHER INFORMATION

Accounting Standard Swiss GAAP FER Auditors PricewaterhouseCoopers AGShare Register Computershare Switzerland LTD

CONTACT ADDRESS

Meyer Burger Technology LtdSchorenstrasse 39CH-3645 Gwatt (Thun)SwitzerlandPhone +41 33 221 28 00Fax +41 33 221 28 08Email [email protected]

INVESTOR RELATIONS

Michel HirschiChief Financial OfficerPhone +41 33 221 28 00Fax +41 33 221 28 08Email [email protected]

MEDIA RELATIONS

Ingrid CarstensenCorporate CommunicationsPhone +41 33 221 28 00Fax +41 33 221 28 08Email [email protected]

IMPORTANT DATES

22 March 2018 Publication Fiscal Year Results 2017, Analyst and Media Conference, Metropol, Zurich

2 May 2018 Ordinary Annual General Meeting, Kultur- und Kongresszentrum, Thun

16 August 2018 Publication Half-Year Results 2018, Conference call for analysts and investors

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Declaration on forward-looking statementsThis document contains statements that constitute “forward-looking” statements, relating to Meyer Burger. Because these forward-looking statements are subject to risks and uncertainties, the reader is cautioned that actual future results may differ from those expressed in or implied by the statements, which constitute projections of possible developments. All forward-looking statements are based only on data available to Meyer Burger at the time of preparing the Half-Year Report 2017. Meyer Burger does not undertake any obligation to update any forward-looking statements contained in these documents as a result of new information, future events or otherwise.

The Half-Year Report 2017 is available in electronic form, in German and English. The original German language version is binding.

The document is also available on the company website www.meyerburger.com

Publishing detailsPublisher: Meyer Burger Technology Ltd, Gwatt (Thun)Concept: Tolxdorff & Eicher Consulting, Horgen Creation/design/production: Linkgroup AG, Zurich

© Meyer Burger Technology Ltd 2017

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Meyer Burger Technology LtdSchorenstrasse 39CH-3645 Gwatt (Thun)[email protected]

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